Blog - Page 240 of 650 - Hit & Run Candlesticks

Assumed Deal – No Fear

November 27, 2019 by Rick Saddler

Markets drifted mildly higher all day on Tuesday on relatively low volume. This allowed the SPY, DIA, and QQQ all to close at another all-time high. So all-in-all it was a very blah day in the market. That said, we remain extended and the VXX continues to be in “dangerously complacent” territory.

In economic news, the President said Tuesday that trade talks “are in the final throes of a very important (Phase One) deal.” This came after the Chinese had announced the previous night that a phone call had been held between chief negotiators. Markets did not react to President Trump’s statement. (Perhaps this was because of the prior overnight announcement or maybe just fatigue of posturing around such a deal.)

$50.00 discount with code: **Privilege**

On other fronts, the FAA has said again that the BA 737 Max is not ready for recertification (and that it will take all the time needed to reevaluate the plane). This statement completely contradicts BA claims that it will resume deliveries of the 737 Max in December. In fact, the FAA said the Max won’t even make its recertification flight until mid-December and recertification may well take through the end of January. (I’m not sure how BA plans to deliver planes if they cannot fly them to the customers.) This news might have an impact on BA stock.

Major economic news for Wednesday includes Oct. Durable Goods, Q3 GDP, and Weekly Jobless Claims (all at 8:30am). This is followed by Oct. Pending Home sales and Crude Oil Inventories (both at 10 am). The only earnings of note are DE, who report before the Open.

Overnight, Asian markets were in the green. In Europe, the major markets are also in the green at this point. As of 7:30 am, U.S. futures are all pointing to a gap higher of between a quarter and a third of a percent.

While there is a fair amount of economic news today, it’s quite possible that many traders have already called it a week going into the holiday. Even if this is not the case in the morning, expect light volumes in the afternoon. The point is that it is quite possible we see another low-volume blah day in the markets.

Even so, the bulls have really been relishing their all-time highs. So, we may move higher, even on lower volume. As always, continue to lock-in profits, move stops, and trade your plan. Remember that your job is to make consistent gains and reduce risk, not to hit home runs every once in a while.

Sorry, no Swing Trade Ideas for your watchlist today as trading should be light before Thanksgiving. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

✅ SMS text alerts and reminders?👈

✅ Check out our newest YouTube videos👈

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education • Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service

Bulls Inspired

November 26, 2019 by Doug Campbell

With the bulls inspired by Hong Kong election results, renewed trade hopes, and a huge day merger news made setting new record highs in the DIA, SPY,and QQQ look easy as they quickly recovered last week’s pullback. Today, the attention will likely shift to earnings and economic reports to find inspiration. After such a big move yesterday and heading toward a major holiday. It will be interesting to see if bulls can find the energy to continue their relentless march higher.

Asian markets closed mixed but modestly higher with Alibaba making a huge splash in Hong Kong markets. European markets are treading cautiously with mixed results as they continue to monitor US/China trade news. US Futures are rather subdued this morning ahead of earnings reports and several potential market-moving economic reports. With markets at new record highs consider your risk carefully as the holiday shutdown approaches.

On the Calendar

On the Tuesday Earnings Calendar nearly 50 companies reporting results. Notable reports include BBY, ADSK, BNS, BOX, CHS, CBRL, DELL, DKS, DLTR, EV, GES, HRL, HPQ, MOV, VEEV, and VMW.

Action Plan

Monday became on the biggest merger days in history, providing additional energy to an already bullish sentiment setting new records in the DIA, SPY, and QQQ in the process. T2122 suggests this bull run still has some upside potential but could soon reach a short-term overbought condition if the bulls continue to find inspiration to rally. Earnings reports could provide that inspiration, or perhaps it will be the New Home Sales and Consumer Confidence reports at 10:00 AM Eastern. One thing for sure is that the bulls remain firmly in control of a trend that shows no price action clues of ending at this point.

Futures markets seem much more subdued this morning, perhaps needed a little rest after such a big effort yesterday. It is also possible with the Holiday looming and the nasty weather conditions moving across the country that traders will try and escape early. Don’t be too surprised if volumes begin to decline quickly with price action becoming very light and choppy after the morning rush Wednesday. As we push new market highs, plan your risk carefully heading into the holiday.

Trade Wisely,

Doug

Phone Call Rally?

November 26, 2019 by Rick Saddler

The bulls ran hard the first hour of the day Monday (on optimism stemming from hope on the trade war front and merger news). After 10:30 am, markets drifted sideways the rest of the day. The indices closed near their highs for the day. The end result was another all-time high close in the SPY, DIA, and QQQ. Even the IWM had a very strong day, breaking out of its range going all the way back to March and (unlike the other indices) it did so on heavy volume.

If there was anything bad on the day, it was that the bullish surge took the T2122 indicator back up well into the overbought area at 88. (T2122 is a 4-week New High to New Low Ratio that has a 0-100 range with over 80 meaning over-bought.) Likewise, all the indices remain extended from their 50-day SMA.

On the news front, overnight China’s top trade negotiator had a phone call with Sec. of Treasury Mnuchin to “address the core issues” last night. This is another signal of progress toward a trade deal and the market is quite likely to take this as bullish. However, in reality, this proves nothing as far as an actual deal goes.

In other news, Congressional Democrats say they expect to deliver their Impeachment report shortly after the Thanksgiving break. However, the door was left open for more hearings and last night a Federal Judge ruled that former White House Counsel McGahn must testify (a decision sure to be appealed). This all could lead to a House Impeachment vote (essentially indictment) before the Christmas break. The process (actual trial) would then be in the hands of the Senate and presided over by Chief Justice Roberts at that point.

Major economic news for Tuesday is limited to Conf. Board Consumer Confidence and Oct. New Home Sales (both at 10 am). In terms of earnings, ADI, BBY, DLTR, and HRL all report before the bell. (BBY reported a beat and raised forecasts.) After the close, ADSK, HPQ, and KEYS all report.

Overnight, Asian markets were mixed but mostly green. In contrast, European markets are mixed but mostly red at this point. As of 7:30 am, U.S. futures are all just on the green side of flat.

With the holiday coming and the most important economic news coming later in the week, it is quite possible Tuesday is a low-volume blah day in markets. Still, bulls have been hearing only what they want to hear lately. So, that phone call report may set off another rally. Regardless, be careful, as low volume is likely to magnify market over-reactions. Just remember that in the longer-term the market trend is bullish. Continue to take profits, move stops, and trade your plan. Keep in mind that a Trader’s job is to consistently make gains, not to hit home runs every once in a while.

Swing Trade Ideas for your watchlist and consideration. Long – DXC, AMG, NTAP, CXO, HAL, CBS, ARNC, DVA, CDW, ANTM, CTL. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

✅ SMS text alerts and reminders?👈

✅ Check out our newest YouTube videos👈

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education • Subscription Plans • Private 2-Hour Coaching

Short Trading Week

November 25, 2019 by Rick Saddler

Friday was a low-volume, indecisive, green day across the markets. Expectations for a low-volume holiday week ahead and the desire to avoid weekend headline risk may well have led to this blah day. In any case, the SPY, DIA, and QQQ all appeared to be curling up after a three-day pullback. Likewise, T2122 rose back to mid-range. So, on a small green day, we started to see broader participation in the rally of the last nearly two months.

On the Trade War front, over the weekend the two Presidents continued to “talk past each other” as reported by Bloomberg. However, China did announce guidelines that it will increase penalties for violations of Intellectual Property rights, as part of an effort to “reduce frequent IP violations by 2022.” However, no details were released nor any mention made of state-sponsored or owned organizations (which are by far the biggest concerns in the IP theft arena). This was seen as an olive branch toward the Trump Administration who will be able to claim it as a trade war win.

In Hong Kong, the pro-Democracy Party has won a huge victory in the “District Council” elections on the heaviest voter turnout ever. Results showed the Pro-Democracy party winning nearly 10 times the number of seats that the Pro-Beijing Party won. However, this will have no impact on actual governance in Hong Kong, as both the “Legislative Council” and Government Offices (who actually make and enforce laws) are essentially Beijing-controlled. Nonetheless, this result may send a message to the Mainland and might cause a rethinking of their approach.

There is no major economic news for Monday. The only earnings report of note before the bell is from JEC. However, in merger news, Swiss pharmaceutical giant Novartis agreed to buy MDCO. Meanwhile, overnight, Asian markets were mixed but mostly green. In Europe, all markets are almost all in the green as well at this point. As of 7:30 am, U.S. futures are pointing to a small gap higher.

We have the holiday coming this week and very little scheduled market-moving news. It is quite possible that we just drift, at least until next week when the initial Black Friday and Cyber Monday sales reports will be available. If we do get unexpected news this week, be careful, as low volume is likely to magnify the typical market over-reaction.

So, remember that in the longer-term the market is bullish. Continue to take profits, move stops, and trade your plan. Keep in mind that a Trader’s job is to consistently make gains, not to hit home runs every once in a while.

Swing Trade Ideas for your watchlist and consideration. Long – X, ADT, STT, BAC, DIS, NTAP, CTL, DXC, BIDU, PWR, FEYE. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

✅ SMS text alerts and reminders?👈

✅ Check out our newest YouTube videos👈

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education • Subscription Plans • Private 2-Hour Coaching

The Trade War Pendulum

November 25, 2019 by Doug Campbell

The pendulum of the Phase 1 deal that has swing somewhat bearish heading into the weekend has this morning swing back to the bullish side, helping to inspire a Monday morning gap. The bulls got an early start after news that pro-democracy candidates won big in Hong Kong. The pullback last week that held trading sets up a great opportunity if the bulls can remain inspired to attack all-time market highs as we head into the Thanksgiving Holiday.

Asian markets rallied substantially overnight in reaction to Hong Kong election results. European markets are also green across the board this morning on renewed US-China trade hopes. US Futures opened bullishly and remained strong throughout the night, currently pointing to gap up opens across all indexes. Perhaps Santa can begin his run early this year fueled by strong consumer sentiment.

On the Calendar

On the Monday earnings calendar we have 31 companies stepping up to report. Notable reports include PANW, A, AMBA, HPE, NTNX, & PVH.

Action Plan

Trade uncertainty dimmed Friday bullishness, but they have spun the story once again, and this morning, the bulls are pushing for a higher open. Pro-democracy candidates won big in the elections on Sunday in Hong Kong with a record voter turnout. A major step for the people of Hong Kong but they still have an uphill fight with the Beijing control of top leadership.

With the short holiday week, we still have several notable earnings reports Monday & Tuesday and a busy economic calendar through Wednesday. However, expect volumes to decline quickly by mid-week and remain relatively low until Dec. 3^rd as traders extend their Thanksgiving vacations. That being said the market indexes appear setup to attack new record highs as long as sentiment on the Phase 1 agreement remains positive. Last week’s strong consumer reading suggests Santa could have a nice run this year.

Trade Wisley,

Doug

The Week Ahead – 11-24-19

November 24, 2019 by Ed Carter

Little to no Fear

November 22, 2019 by Doug Campbell

Although we have had 3-days of pullback in the indexes, the VIX shows little to no fear, and so far the indexes has suffered no discernible technical damage. According to reports, the likelihood of a completed Phase 1 trade deal before the scheduled December 15^th tariff increase has diminished. As we head into the uncertainty of the weekend and the coming holiday, it may be difficult for the bulls to find much inspiration. However, a consolidation at this level would be productive and bullish as we wait for some political clarity.

Asian markets closed mixed overnight as trade uncertainty weighed on investor’s minds. Across the pond, European markets are bullish following positive Euro data. US Futures point toward a modestly bullish open ahead of Consumer Sentiment that consensus expects to increase slightly at 10 AM Eastern. Plan your risk carefully as we head into the weekend.

On the Calendar

On the last day of trading this week, we have just 15 companies reporting earnings. Notable reports include BKE, FL, HIBB, and SJM.

Action Plan

During the impeachment hearings, the congress could not be bothered to pass a federal budget but did set aside enough time to kick the can down the road with another stopgap spending bill to avoid a government shutdown. It now looks as if there will not be a Phase 1 trade agreement before the scheduled December 15^th tariffs increases. China said in a report that they want a trade deal but are not afraid to fight. Impeachment hearings have not progressed into Russian election meddling as the political drama extends.

With a light day of earnings and economic reports the US Futures are trying to put on a brave face and break the 3-day pullback as we head into the weekend. With not many places to find inspiration and trade up in the air it may be difficult for the bulls to gain much traction. However, if they can prevent additional selling and slip the indexes into a consolidation I believe that would be a win keeping the market trends bullish. Although we pulled back there has been on technical damage, and this rest appears to very constructive thus far. According to the VIX, fear of a selloff remains very low as we head into the weekend.

Trade Wisley,

Doug

More Trade Talk and Worry

November 22, 2019 by Rick Saddler

On Thursday, the bad news was that stocks posted their first 3-day losing streak since July. In the process, they broke their uptrend, which began back in early October. The good news is that this “selloff” has only totaled about one percent…and it was a well-needed rest after a strong six-week rally.

This pullback/pause has seemed to happen over indecision about the outcome of the Trade War with China, etc. Unfortunately, this is likely to continue simply because international trade is such a massive part of GDP around the world, including the US. Therefore, trade is a large driver of earnings and, therefore, stock markets. Moreover, it is likely that finding themselves in this conflict, the Chinese have no reason to rush to an agreement or make concessions, because President Trump faces an election next fall, while President Xi never will. The point is that we traders need to adapt to this new normal.

Perhaps the best news of the day is that Impeachment Hearings are now concluded. Obviously, there will be debate and votes on this case, as well as possibly a Senate trial. However, at least until that trial, these will be limited to being reported in sound bites now that the public hearings are concluded. Beyond that story, Friday’s major economic news includes the Nov. PMI (9:45 am) and Michigan Consumer Sentiment Survey (10 am). The only earnings of note before the bell are FL and SJM.

Overnight, Asian markets were mixed but mostly green. In Europe, all markets are in the green as well at this point. As of 7:30 am, U.S. futures are pointing to a quarter percent gap higher.

Remember that even with the uptrend line broken, we are not far off the highs and we did need a rest. So, be careful about getting too bearish or over-reacting. Yes, Trade War whiplash is likely to continue. However, in a longer-term view, the market is still bullish.

Today is Friday. So don’t forget to take profits in front of the weekend. Continue to lock-in gains, move stops, and trade your plan. Keep in mind that a Trader’s job is to consistently make gains, not to hit home runs every once in a while.

Sorry, but no Swing Trade Ideas for your watchlist on Friday. However, if you’re in the trading room at 9:10 am Eastern, we will cover some charts. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

✅ SMS text alerts and reminders?👈

✅ Check out our newest YouTube videos👈

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education • Subscription Plans • Private 2-Hour Coaching

Tariff Concerns

November 21, 2019 by Doug Campbell

The possible delay of the Phase 1 trade deal and the questions about that means for the December 15^th tariff increases brought out the bear yesterday. However, by the end of the day the technicals of the index charts took little to no damage. Even the VIX by the end of the day showed little to no fear growing in the overall market. That being said, the market is obviously quite sensitive to the notion of increased tariffs by the end of year, and it will likely continue to be a driver of market sentiment requiring traders to remain nimble.

Asian markets closed in the red across the board in reaction the possible trade deal delay. This morning European markets are lower across the board as the concern of Hong Kong bill passed by Congress could affect trade relations going forward as it heads to the President’s desk for signature. US Futures are flat to slightly bearish ahead earnings and economic calendar reports.

On the Calendar

On Thursday’s Economic Calendar, we have 46 companies reporting earnings. Notable reports include JACK, LB, LXB, NTES, and QIWI.

Action Plan

A story suggesting there would not be a Phase 1 deal this year brought out the bears yesterday. The major concern was not the Phase 1 deal; it’s the question as to what happens with the tariffs scheduled to increase December 15? Clearly and increase before the end of the year could have serious impacts on a market that has rallied on the optimism of a partial deal. Though we have a few earnings reports today, it’s unlikely the market will see much impact from their results; instead, the market may focus on the economic calendar news with Jobless Claims, Philly Fed Survey, and Existing Home Sales.

Although yesterday selling was a concern, the technicals of the index charts took very little damage yesterday. Personally, I think the pullback to at this point was good to relieve the relentless bullish pressure. In fact, this pause in the rally could setup new buy opportunities assuming we can get some clarification on the Phase 1 negotiations and December 15^th tariffs. Stay on your toes as this political football continues gets kicked about along with market sentiment.

Trade Wisely,

Doug

Trade War Leads Agenda

November 21, 2019 by Rick Saddler

In spite of LOW and TGT both reporting beats (and guidance raises) before the bell, US Markets all gapped lower Wednesday on trade fears based on China’s anger over the US Senate passing a Hong Kong Democracy Bill. After the Open, we ground sideways the rest of the morning. However, just before 1 pm, word came from White House sources that a phase one of any trade deal is not expected to be completed in 2019. This caused an immediate and dramatic sell-off for the next half hour.

After that early-afternoon selloff, the remainder of the day was spent recovering from this over-reaction. By day end, we closed with indecisive, black candles across the board. The SPY and DIA both finished down about 0.4% and the QQQ down 0.6%. However, all indices remained in their range for the week and we needed a bit of a rest to relieve over-extension anyway. So, the down day was not necessarily a bad thing overall.

Thursday’s major economic news includes Weekly Jobless Claims and Philly Fed Mfg. Index (both at 8:30 am) and Oct. Home Sales (10 am). There are also a couple of Fed speakers, but they should not move markets. The only major earnings before the bell today are for M (which posted a miss on sales and lowered forward guidance). In addition, Impeachment Hearings resume at 9 am.

Overnight, Asian markets were all in the red. In Europe, markets are almost all in the red as well at this point. As of 7:30 am, U.S. futures are just on the red side of flat across the board. However, as is usual lately after the Wed. afternoon bad news about the Trade War, last night the opposite implication comes from China. It is being reported that China has invited the US negotiators to Beijing for another round of talks. (This China Trade War debacle is the very definition of ping-pong diplomacy.)

While Impeachment Hearings continue Thursday, the case has either already been made or was never going to be made (depending on your political point of view). Either way, that circus will wind down soon with an Impeachment vote. However, the China Trade War story is very likely to drag on for some time.

Remember that the bulls remain strong and resilient. So, be careful over-reacting to any temporary shock news. Continue to take profits, move stops, and trade your plan. Keep in mind that a Trader’s job is to consistently work their process to make gains…not to hit home runs every once in a while.

Swing Trade Ideas for your watchlist and consideration. Long – ADT, PWR, GRMN, AIZ, CAH, FEYE, GE, FITB, NTRS, INFO, STT. Short – MYL, NI, FANG, OXY, CINF, MCD. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

✅ SMS text alerts and reminders?👈

✅ Check out our newest YouTube videos👈

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education • Subscription Plans • Private 2-Hour Coaching